CPI Certification Practice Test 2025 – The All-in-One Guide to Exam Success!

Question: 1 / 400

Which of the following best describes the function of lagging indicators?

They assess future trends in performance

They provide real-time performance data

They evaluate results after changes are made

Lagging indicators are metrics that reflect the outcomes of past actions or strategies. By evaluating results after changes have been implemented, they help organizations understand the effectiveness of their previous decisions and the impact those decisions have had on performance. These indicators are typically used to gauge success after the fact, allowing analysts and managers to assess whether the actions taken have led to the desired results.

The context of the other choices clarifies why they do not align with the definition of lagging indicators. For instance, assessing future trends relates more to leading indicators, which are designed to predict upcoming performance based on current data. Real-time performance data is also outside the realm of lagging indicators, as they specifically focus on historical performance. Similarly, insights for proactive adjustments are more aligned with leading indicators that provide information needed to make changes before outcomes are measured. Thus, option C stands out as the most accurate representation of lagging indicators.

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They offer insights for proactive adjustments

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